1-Star Biotech Stocks Poised to Plunge: Pluristem Therapeutics?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Pluristem Therapeutics (Nasdaq: PSTI  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Pluristem and see what CAPS investors are saying about the stock right now.

Pluristem facts

Headquarters (founded)

Haifa, Israel (2001)

Market Cap

$211.3 million

Industry

Biotechnology

Trailing-12-Month Revenue

$757,000

Management

Chairman/CEO Zami Aberman
CFO Yaky Yanay

Trailing-12-Month Return on Capital

(25.4%)

Cash/Debt

$68.3 million / $0

Competitors

Aastrom Biosciences (Nasdaq: ASTM  )
Advanced Cell Technology
Osiris Therapeutics (Nasdaq: OSIR  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 41% of the 61 members who have rated Pluristem believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star zzlangerhans, succinctly summed up the bear case for our community:

[CEO Zami Aberman] predictably took advantage of his anecdotal claims that PLX cells were responsible for successful bone marrow transplantation in three instances, although there has been no clinical trial in which PLX cells were utilized for this purpose. I don't have much sympathy for those who bought into the dilutive financing at [$4 per share], since they should have known the share price is unlikely to see that level again for a while until dilution becomes necessary again. The company now has to slog through enrollment of the phase II trial of PLX cells in intermittent claudication and it is unclear if a single patient has yet been treated. I see a descent below [$3 per share] if not further as Aberman lowers the company's profile for the rest of the year.

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Read/Post Comments (3) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 08, 2012, at 11:02 AM, Iruleyoulose wrote:

    There have been 3 compassionate cases with the PSTI treatment. One, with the girl's death after surviving 180 days with a terminal disease with no other treatment option with a forecast of days/weeks to live prior to treatment. What is conveniently left out in this hack job reporting is how the girl actually died.

    Orphan drug status will increase value and accelerate the clinical trials.

    41% rated it to underperform.... so, that means that 59% rated it to perform as well or better than the S&P 500.

    This is a terrible article, indicates 180,000 CAPS members rating with the first paragraph, then indicates only 61 have rated this stock and of them 59% indicate it will do as well or better than the S&P 500. Another terrible hack job and this article should be deleted for intentionally misleading investors. How does it get a one star rating, when over half of the rankings have PSTI performing as well or better than the S&P 500?

  • Report this Comment On November 08, 2012, at 11:23 AM, naughtyguy wrote:

    I often find replies are more helpful than the articles I read!

  • Report this Comment On November 08, 2012, at 11:34 AM, naughtyguy wrote:

    http://www.bloomberg.com/news/2012-11-07/girl-dies-as-pluris...

    May be well worth the stock price in a few years, but not now! IMHO I have no position in this stock. Does Iruleyoulose?

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